The Victoria Real Estate Board has released the October statistics, and although we’re still seeing a very active real estate market in Victoria, it’s starting to show signs of slowly stabilizing. We saw 664 sales in October, higher than September at 640, which may be due to the flurry of buyers trying to get approved for mortgages prior to the new Mortgage Changes.
“As expected, we saw fewer sales than this time last year,” notes Victoria Real Estate Board President Ara Balabanian. “Looking at the longer term picture however, sales last month were 17.1 per cent above the ten year average of 567 properties for the month of October, so the market is still very active here in Victoria, and this is in spite of the ongoing low inventory levels.”
“The fact that we’ve seen such a controlled levelling off in the market directly following a year which felt so uncontrollable in terms of demand and pressure on prices illustrates the depth and stability of the Victoria market. An unstable market may have experienced a heavy correction or shift, whereas in our market sales are moderating at a reasonable rate.” adds President Balabanian. “In the coming months we expect to see less inventory on the market, because the year end changes buyer and seller behaviours, their focus shifts to holidays and winter weather. One unknown influence that may play on the winter market is the upcoming mortgage stress test. Some buyers may move their purchasing timelines forward to make their home purchases before the stress test on uninsured buyers (those with a down payment of 20 per cent or more) becomes required January 1.”
As for condos, this year 213 were sold in October – a slight decrease compared to 215 in October of 2016. The average price for a condo is up to $449,176, a 14% increase over October of 2016. We are seeing a difference in the market though, and a sign of stabilization in condos as well, as the sell to list ratio (percentage of condos that were sold compared to how many are listed) has changed from 98% in October 2016 to 74% this year. If properties are sitting on the market a little longer than we’ve seen in the last 18 months, we may start to see a more balanced market with the norms that we’re used to with price reductions, and negotiations again – a couple more months will give us a better idea.
To read the full release, check it out here: http://www.vreb.org/current-statistics
If you’re looking to purchase or sell a property in the current market, or in the future, get in touch with The Condo Group for more information at 250-382-6636.
— Amy Francoeur